>> they have the best opening day record, i heard faber say, in major league history. just the other 161 games that's the issue. enjoy the game. follow me on twitter. here's power. yikes. all right. three hours to go in the trading day. markets trying to snap a two-day losing streak. we're coming off the biggest two-day point and percentage drop in the dow since early march. with europe worries up and the chances for qe-3 down, can stocks stage a spring rally, ty? >> and speaking of rallies, metals making a bit of a comeback today after gold and silver closed yesterday at their lowest levels since january. is the commodities bull out of steam or not? we're going to ask a real power player here. on the first day of the masters we'll be joined by the global head of commodities at jpmorgan. sue. and an hour from now the president signs the jobs act. it rolls back security regulations to make it easier for start-ups to raise money. but will it create more jobs or

more fraud? welcome everybody. i'm tyler mathisen along with sue herera and "power lunch" begins right now. i'm mary thompson at the realtime exchange. first-time jobless claims hit a low fears about europe [ inaudible ] >> here's where we stand. right now nasdaq up 12 points. s&p down fractionally and dow down as well. we are seeing oil recovering somewhat. euro is down again by about 2% for the week. only big movers bed, bath &

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all right. let's try this again, shall we? welcome back to "power lunch." >> first silent edition of "power lunch" ever. >> exactly. we obviously had some audio problems. we've cleared those up. we're going to start all over again. what a better place to begin with than bob pisani at the nyse. >> just don't turn the music up,

please. listen, folks, have you noticed we're doing better? not a great week in the stock market, but we're definitely doing better than europe. there is such a thing as decoupling. look at the major indices this week. it's a global look. we're down, not a great week. but germany which has been having a great year up until a couple weeks ago and spain, brazil, about equal to us. hong kong looking better than both of us. look at germany versus the united states just the last couple of weeks. people keep saying there's no such thing as decoupling, but this is what i'm talking about. the last couple weeks the s&p hasn't been great but there's the gap between us and germany. that's almost 3%. you want to watch something? all the stock traders are watching, couple big exchange-traded funds. look at the big bond fund here. this is the i shares barclays the agg. people have been waiting for this to break down. this $14 billion sitting in this. the answer is it's moving lower but not breaking down yet. still the jury's out on this

whether this is still going to happen or not, but they're watching this. the other thing they're watching is all the high yield etfs. those are the junk bond funds that are out there. this is one of the biggest ones, i think there's $9 billion or $10 billion index toded to this. it's moving lower and about to breakthrough technically to some levels about to the lowest levels since january. keep a close eye on the junk bond funds. an awful lot of money in there as well. brian, wlast important is we have the dollar up but not killing commodities or commodity stocks. >> oil right now pretty much, bob, at the highs of the session. the optimism over jobs is part of it here. we also have geopolitics globally happening. reports of a missile fired from egypt over in israel. not the direction a lot of people would expect that kind of activity. also news about a chinese insurer may not cover ships that carry iranian oil as the embargo over the eu is set to ramp up.

that putting a little foundation there and the spread between brent still pretty wide, but it's narrowed a fair amount today more than 3%, actually narrowing. the other thing to talk about in nat gas is a major issue today. they had a big inventory -- well, bigger than expected. and we are seasonally getting warmer weather. so we have a lot of supply, not a whole lot of demand until we get sort of macro solution on what to do with all of this natural gas. now at 1:30 i'm going to wrap up the metals close. as bob said, we have a bid in metal, sue, like i said when we have the stronger dollar. that correlation is not happening today. >> indeed it isn't. thank you, brian. let's switch on the "power lunch" power surge. drill down on the stories driving the day. and early spring meant good news for u.s. retailers with most showing positive same store sales for march. courtney reagan is at the cnbc realtime exchange with the breakdown for us. hi, courtney. >> hi, sue. good afternoon. the 20 retailers still reporting monthly comps the 3.4% gain that thompbson reuters expected increasing 4.3% for march.

and without drugstores same store sales gained nearly 7%. 7,500 warm temperature records set across the country in the month of march. the warm weather and early easter helping to drive retail foot traffic up by 5% for the month. year over year translating into strong sales in a number of categories and for many retailers. here are some of them. discounters among the biggest winners. look at ross stores up 10%. tjx up 10% as well. zoomi es up followed by continued aim store and gap, not impressing teen retailer, wet seal, ringing up dry sales. and costco falling short of expectations with just a 6% gain for the month. target's impressive comps propelling executives to a rare mid-quarter update upping first quarter guidance for both earnings and full quarter comp

sales. both tjx and ross stores upping guidance both seeing their shares at all-time highs again today. bed, bath & beyond strong earnings. shares up 9.4%. even if strong march sales is just april demand pulled forward, the earlier retail sell merchandise, the higher the margin captured. tyler. >> courtney, thank you very much. job growth in the aviation industry is soaring from the plane makers to the engines and parts suppliers, phil lebeau joins us from one of those essential plants with some details. hi, phil. >> reporter: hi, tyler, i'm at the rbc plant in connecticut. this place has been on fire literally in terms of cranking out these. these are bearings that go to the commercial plane makers. the reason we came here to connecticut is because when you look at the aerospace growth in this country and it's substantial right now, six states are primarily benefitting. many are on the west coast, here

in the east coast not surprising when you see a company like rbc benefitting as well. look at what they've gonethroug years, the net sales last quarter up 17% versus the same quarter a year ago because of the growth in orders for commercial airplanes, it's got more demand, payroll grown by 16% and still have openings that is in fact expanding four of 23 plants to meet that demand. all of this brings up the question, is this company prepared for when the aviation industry possibly slows down? the ceo says he doesn't see it on the horizon. >> and maybe we're looking at another recession starting in 2015. but it seems to us that the strength for the aircraft market is good for that time period. >> reporter: rbc goes by the ticker symbol roll. it's up 42% in the last four years. when you look at all of the aviation manufacturing publicly

traded companies with the exception of boeing, they've all had a nice run over the last couple years. back live, sue, when i pitched this story a lot of people said what's a ball bearing? well, this is what they make here. they ship 2.5 million of these. this goes into the wing of a plane so when you see the flaps go up and down, tyler and sue, this is what controls it. and right now this is in demand. back to you. >> it sure is. phil, thank you very much. you know, some analysts say we are at the start of a new energy pipeline boom with the potential for up to 1.5 million barrels of pipeline capacity online by the end of 2014. bertha coombs joins us now from houston with the pipeline winners and losers. hi, bertha. >> reporter: hi, sue. yeah, we are at the echo terminal under construction here in houston. its enterprise partners big effort to try to provide the missing link we have seen in the oil boom so far. we have all this oil with no way to feed it to refiners. sea way reversal and

transcanada's expected, keystone gulf link we'll see 100 million barrels a day just from cushing to texas by 2014. we'll see it across the country in all of these areas we're seeing a number of shale plays and unconventional oil drilling on land. analysts are bullish on enterprise. deutsche bank also likes the bigger players like kinder morgan that are the master limited partnerships because of the way they structure, they really pay out bigger dividends than just the stocks themselves. so while the stocks have been on a run, analysts say the mlps are attractive for income-oriented investors, they pay between 4% and 7%. now, if we start see iing the f moving rates, that may not be attractive when you see some volatility there. as far as the refiners, he says

that valero is one likely to benefit from the new lower transport costs that will come with these pipelines. in fact, they have contracted were space on them. but the mid-continent refiners benefitted from the cheaper landlocked oil like holly, frontier and cvr energy, they could see some of their margins be a little squeezed as we are anticipating with some of this unleashed pipeline activity that you'll see the price of wti start to stabilize. coming up on "power lunch" we're going to talk to enterprise's ceo and take a tour. for more, check out cnbc.com on the pipeline players. ty, back to you. >> bertha, thank you very much. now to the smartphone wars. and it's not often that a product launch has so much at stake for so many companies. nokia launching its new lumia phone this weekend. a high stakes bet for nokia but also for microsoft and at&t. jon fortt is watching these

worlds collide. hey, jon. >> hey, tyler. here i have the new flagship windows phone. no exaggeration to say it might be the best last chance for nokia and microsoft in the smartphone market. north america is the leading indicator and that's where this is launching as goes north america, so goes the mashlgt. and this market, while it's not saturated is getting there. kom score said this week that more than 104 million people in the u.s. own smartphones in the three months that ended in february. half had android, another 30% has iphones and those two platforms were gaining share while rimm, microsoft at 4% and shrinking decline. just as daunting for nokia, people mostly like the android and ils smartphones they have. a j.d. power survey last month had the iphone tops in satisfaction followed by htc and samsung. i've had this for a few days and can point out a couple challenges that nokia's going to

have. compared to the iphone 4 the screen isn't that good. one obvious metrics in the store, the best windows device doesn't measure up to the best iphone and android phones. now, that said, nokia stock is near 52-week lows and this is going to sell for $99 under contract. so even modest success could help. and the phone reviews thus far are solid enough to make it a contender. sue. >> jon, thank you. the hacking scandal surrounding some of news corp.'s biggest properties continues to grow. just days after james murdoch resigned from the top seat, the company's sky news admitted today it too has hacked e-mails. kayla tausche has been following this unfolding drama for months now and is here with the very latest details. kayla. >> sue, just when you thought the phone hacking contagion couldn't spread any farther came this morning's admissions from "sky news" that it said it hacked e-mails. chief rilely saying in a

statement we standby these as justified and in the public interest. we do not take such decisions lightly or frequently and require finely balanced judgment based on individual circumstances. now, there were two occasions he said where journalists hacked e-mails of suspected criminals and two other instances separately that compromised national law around airport security and illegal weapons. exercising loopholes that are riley says a legitimate part of responsible journalism. even with that defense, the bbc is reporting on twitter that the sky editor who authorized the hacking, simon cole, is stepping down. and news corp.'s 39% stake in sky parent ha long been the subject of intense scrutiny throughout the last year. an attempt to take over the remaining 6 1% was abandoned when the phone hacking allegations reached a fever pitch last july. also, the u.k.'s broadcast regulator has opened an investigation over whether news corp. is a "fit and proper owner for that stake."

sue, as you mentioned, former chief remains nonexecutive director on the company's board relinquishing the chairman's title earlier this week. perhaps he had some inkling of this going on. tyler. >> thank you, kayla. now for the bond report and rick santelli is our guy. he's tracking the action at the cme. hey, rick. >> thanks, tyler. everybody today of course is watching how equities are fighting to hold or get close to unchanged territory like the s&p right now. but look at an intraday chart of 10s. look at a two-day chart. rates keep moving lower after the minutes were released and they spiked. part of that might be a lot of optimism about tomorrow's jobs report. but a bit of it also has to do with what's going on in europe, again. let's look at a two-year chart of the spread between our 10-year rate and the 10-year bund rate. you can see it's now at the widest in a bit over a year. it's in the mid-40s. and there is visual graphic proof that the deterioration of fund issues whether it's

portugal or spain making a difference in a large way once again. canada did something today they haven't done much. they created 82,300 jobs. they were looking for 10,000. it's the fourth-best job creation going back 30 years. i checked. if you look at a chart now the currency side of this, the dollar versus canada, you can see the dollar fell against the canadian on what really is very good news. if you open it up to a year-to-date chart, this was already in a range. we want to really monitor this. and of course it will be effected by what occurs tomorrow at 8:30 eastern. and i will be here to bring out the number on "squawk box." back to you. >> we look forward to seeing you bright and early tomorrow morning, ricky. thank you. stock market today is trying to shake off concerns about europe and a possible end to monetary easing here in the united states. the dow, the nasdaq and the s&p have been off more than 1% since the fed minutes came out tuesday. but can a good earnings season, which kicks off next week, fuel the rally once again?

joining us are doug kote at ing investment management and channing smith. and co-portfolio manager of the capital advisors growth fund. welcome guys. nice to have you here. >> thank you. >> doug, i'm going to start with you. you think that maybe if we do not get more easing, if the punch bowl is taken away from the stock market, that in essence that's a good thing. it may be rough right now, but longer term that's good for stocks. >> absolutely. taking the punch bowl away means we're getting back to normal. not only did the fed do that, but the ecb is doing that. that's a really good sign f. you looked at the fomc statement in march 13th, basically upgraded the economic outlook from modest to moderate. that was a bullish statement by bernanke. and it's a good sign going forward that we might get rates rising for all the right reasons. that's reflation and i think

profits coming out for the first quarter look good. the big attention i think the fed's focused on is tomorrow's unemployment number. don't look at only the headlines, look at the revisions. i think february and january will be revised smartly upwards. >> channing, as i read your view of the market, it is somewhat less sunny than doug's? >> yeah. at the capital advisors growth fund, look, we agree that the economy is getting better. what we're going to be focused on is the direction and trajectory of profit margins. today profit margins are at record levels. we see a couple of headwinds that could challenge that positive trajectory. >> what are they? >> higher commodity prices, gasoline that's rising. this is going to effect the consumer. they're still 70% of our economy. we see a global economy that's slowing, slowing in china, slowing in brazil, recession in europe is happening. and so if you look at where the revenues from s&p companies come

from, that's about half of s&p revenu revenues. so that's a headwind. and lastly, if you look at the labor cost, we've seen a rise in labor cost. and we've seen a slow down in productivity. this rally since 2008 has been built on productivity gains and low labor costs. >> who's getting raises here except for ceos? >> that's a good question. but if you look at the labor department statistics, it's saying that there are higher labor costs. and that is a real headwind to margin expansion from these levels. >> doug, i know you don't necessarily agree with what channing just put forth, but give me your best advice for putting money to work in the market right now taking into account that perhaps part of the scenario that channing has laid out might indeed unfold. >> well, sure. you want to be broadly globally diversified in both equities and bonds. we see a few gaps in investor's portfolio, mid cap in particular, on the bond side.

global bonds, we like global bonds for the diversification and higher yield you get. but there's also many catalysts for growth. even if china slows down, you have frontier markets. frontier markets, vietnam, thailand, turkey will more than make up for slowing growth in the big emerging markets like china. and you had a story earlier about the oil industry, the energy industry really ramping up for this shale gas revolution going on. we think that creates a lot of jobs that's not discounted in the market. >> channing, let's look at a couple of your stocks. i don't mean to paint you as all dour all the time. you have some things you think are worth buying including at&t, which has been an unloved stock. most people don't like its cellular service or network or it scores lowest on most of the studies there. why do you like it? >> well, let me clarify, tyler. you know, what we're looking at is from these levels what is the likelihood that we're going to

see gains of 10% range? we don't see that. we see gains more in the 4% to 6%. and if you buy into our theory that profit margins will recede over time and come back to a normalized level, you want to look for dividend yield. dividend yield is larger proportion of total return. so we have focused our portfolio toward very stable companies, stable business models and very attractive dividend yields like at&t and vodafone. offer a dividend yield of well over 5%. >> gentlemen, thanks. >> you're welcome. >> straight ahead, phil fall cone, you've seen him here on "power lunch" a time or two. considering putting his wireless network company into bankruptcy. he as you know has pumped billions of dollars into that business, but it has also hit a few major roadblocks. >> so what's the takeaway from this for investors? bad luck? bad judgment? little of both? we'll talk about it on the other side of this break. they have names like idle time books and smash records

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this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. mpblt welcome back to "power lunch." let's check in with scott wapner and see what stock's on his radar right now. >> sue, thanks so much. i'm watching apple today not only because peter jefferies raised the price target but the best we can tell here for the first ever today apple has passed google in terms of the

price of the stock. take a look. it was $633 for apple to $632 for google at one point. yeah, technology's not doing all that well today. but as i look on my screen right here, they're in a virtual tie. i don't know if you can pull up google as well in the control room. $632 for each of these stocks. apple and google. just an interesting little nugget. apple of course wins the market cap battle quite handedly but something i'm following. >> i can see one of the other things you're watching too there, scott. >> what would that be? >> i see guys swinging sticks, clubs behind you there. >> it's going to be a great weekend for golf. >> all right, scott. the clock is ticking on the famed fund manager, phil falcone, as he tries to figure out what to do with his troubled wireless company, lightsquared. the s.e.c. blocking his proposed network over concerns of gps interference. he now has until the end of the month to work out a deal with

creditors and tell cnbc a voluntary bankruptcy is not out of the question. he said "the rationale behind the voluntary filing is to complete the vision. to complete the plan to build the network and protect the company from the creditors who are more interested in a quick flip." so we're going to talk more about this now and what investors can take away from this. gary kmin ski is with us. bha is the lesson of this exercise for phil falcone and for people who are watching their fund managers whether they're hedge fund managers or mutual fund managers, do things with their money. >> this situation obviously is a mess. obviously you're going to have -- the discussion now between falcone and the creditors who have different agendas. there's a lesson here as you mentioned. it has to do with the idea when falcone raised huge amounts of capital. up to $26 billion in terms of asset in 2008. it was really done on the premise he had made a lot of

money for his partners being short sub prime. >> that's right. >> he made a lot of money being short sub prime. he had made a lot of money in previous years. various previous years picking stocks. then he went and did something different. this was not what -- this was not how the performance was created. this is not how the track record buzz built becoming an entrepreneur and in a sense a developer of a communications business. and this does have lessons. when you get away from that core competency, it's called on wall street, a fancy name, style drift. style drift is really simple. you raise money based on past performance. and then you do something different. there's a lot of red flags out there that would be applicable not just to hedge funds -- >> he didn't just drift. i mean, he took a lot of capital. it was not a nibble. >> correct. >> this was a big bite at the apple. >> correct. this was a one-off. but, again, here we listed a number of things in terms of stock. if this was a very big style drift. but you want to look at mutual funds when they changed the

benchmark. they say we're going to be benchmarking the russell 2000 or the nasdaq 100. that's one of these red flags. asset growth followed by change in portfolio strategy. that's what you had with falcone and harbinger. had to create returns, they go outside core kpen ten si. addendums made to the core competency. not many people read the mutual funds when they invest in the mutual funds. see if they don't put these sort of changes to what they are saying that they're very good at. and then again significant concentrated investments. very applicable here. when you have a mutual fund that had built its trark record by having 50 to 100 positions and then say we're going to be a core investor and have 15 to 20 positions, that's a red flag. >> you see sometimes in the mutual fund world a small company growth fund that holds an apple, for example. and they may say, well, we have the ability in our portfolio to go into larger cap, or they can

say this was a small company once. >> correct. >> that's another example of drift. >> yes. but my experience when you are style box constrained, say you're a small cap manager and you have to read the pros pecktous, if we make an investment, can we keep it when it becomes a large cap company? the greatest example of that sun corp energy. if you looked at the history of the company when it grew from 700 million to several billion, you had small cap managers forced to sell, mid cap managers bought and then had to sell it. my attitude has been you want to be with a core manager who doesn't have to be constrained by his capital box. if you pick a great stock, and management wants to continue o own it, they should. an example with harbinger is here. you had a number of dividend growth and income funds a couple months ago recognizing they were benchmarking the s&p 500. they didn't own apple. they were having the relative under performances as a result

and went to change the bylaws and say we can buy dividend securities because they pay a dividend. >> the real bottom line here is watch what your manager does with his/her your money. >> when you raise a lot of capital based on good performance, any investor or viewer should make sure they're doing the same thing they did to get that performance and asset growth. >> gary, thank you. good to see you. have a great weekend. >> brian shactman is live at the nymex with a very important metals close. and then a "power lunch" exclusive with gold and silver down this week, we talk to one of the most powerful people in the commodities world. life masters is global head of commodities at jpmorgan. we will ask her if the bull run in her sector is over. "power lunch" is back in two.

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welcome back to "power lunch." i'm mary thompson at the realtime exchange.

a mixed market ahead of the long holiday weekend and release of the march jobs data. tomorrow the dow and s&p under pressure. the nasdaq showing a little strength. vix slightly higher today. what we're seeing also is a rebound in crude and gold which has been under pressure the last couple of days. and of course strength in the dollar as we see continued fears about -- concerns about debt situation in spain. look at s&p winners and losers about 1:30 eastern bed, bath & beyond. consolation putting pressure on its stock down a whopping 14%. lastly, just want to touch on jc penney because the retailer's makeover continues. stock slightly lower on the news that it is going to be cutting 13% of its staff at headquarters. that's part of makeover at the retailer. gold and other metal prices getting ready to close right now. and brian shactman is at the nymex with that. >> mary, thank you very much. we got a little bit of a pop in gold. and as we talked about, this is

with a stronger dollar. we have some bargain hunting and short covering combined. we're up about $16 here on the session. look at the year-to-date, i've talked to a couple traders and analysts have come on and said this as well that maybe there's an overreaction to the fed minutes and that the fed is going to still be extremely accommodative and that's bullish for gold in the big picture. getting people to re-enter the market. silver took it harder on the chin than gold and bouncing back a little more. look at the rest of the complex, copper and plat number the laggards. i always like to keep an eye on copper as the proxy for global growth and definitely one of the weakest of all the metals. jpmorgan's commodity performance in 2011 beating out long-time leaders goldman sachs and morgan stanley. company tripling revenues. we're live with the woman shaking up the commodity sector and in turn bringing jpmorgan out on top. hi, sharon. >> reporter: hi, sue. it's been a volatile week in

commodity and this sector is often extremely volatile. underscores the need to better educate all facets. i'm joined by the head of global commodities at jpmorgan. jpmorgan today just made a $5.5 million gift to create this comprehensive center for commodities here at the university of colorado, denver. it's the largest gift that the school has ever received. and why is jpmorgan making such an important investment at this time? >> thanks, sharon. the answer is that commodities are increasingly at the center of the public eye. their influence on growth, on economies, on disposable income is something we all individually feel every day. and of course corporations and governments feel it too. and the challenge is to ensure that we have the right talent in this particular area so that public understanding and policy decisions as well as the operations of companies can be successful. so the decision to fund the

commodities center here at cu denver was really driven by the belief that we need to increase and expand talent in the commodity markets because commodities play such an important role in economic growth. >> and jpmorgan has been investing heavily in commodities for some time definitely under your leadership. we've seen as sue mentioned a tripling of your revenues in 2011 topping $2.8 billion. tremendous growth many see it as part of your vision, your strategy for the reason that that is happened. is that really sustainable? >> well, we've been investing in the commodities business. and it's important to realize that our commodities business is not about betting on commodity prices. it's about assisting clients in executing, managing, their risks and ensuring access to capital so they can make the kind of large long-term investments that are needed in the long run to expand the supply of commodities. and that is an area which we anticipate will continue to grow very, very rapidly over the next

couple of decades in fact. so, yes, we are very excited about the prospects for growth in this particular area. >> and you're looking at growth not only in agriculture and metals and in oil, but across the board in all facets. that's what you're investing in. a lot of concern has been placed about jpmorgan particularly its positions in the metals space and looking at your positions in silver we talked earlier about the volatility in the silver market, can you talk about jpmorgan's positions and price volatility and how are they related? >> yeah. that's a great question. you're right, there's been a tremendous amount of speculation particularly in the blogosphere on this topic. i think the challenge is it represents a misunderstanding as the nature of our business. as i mentioned earlier, our business is a client-driven business where we execute on behalf of clients to achieve their financial and risk management objectives.

the challenge is that commentators don't see that. so to give you a specific example, we store significant amount of commodities, for example, silver, on behalf of customers we operate vaults in new york city, singapore and in london. and often when customers have that metal stored in our facilities, they hedge it on a forward basis through jpmorgan who in turn hedges itself in the commodity markets. if you see only the hedges and our act ift in the futures market, but you aren't aware of the underlying client position that we're hedging, then it would suggest inaccurately that we're running a large directional position. in fact that's not the case at all. we have offsetting positions. we have no stake in whether prices rise or decline. rather we're running a flat or relatively match book. >> so what is commonly out there is that jpmorgan is manipulating the metals market. from what you're outlining that is not possible because of the

different side of the business that you're in part of. >> that's right. it's not part of our business model. it would be wrong and we don't do it. >> you've had such a long history at jpmorgan in the derivatives market now heading commodities. one of the other things that is really struggling for many traders is trying to figure out what regulation is going to look like and how that's going to impact their business. what is your view? and how concerned are you about regulations that are coming down for the otc derivatives market and for commodities? >> again, another great question. i think i want to say first that jpmorgan strongly supports the need for improved regulation in financial markets and financial institutions broadly. the key is to ensure that that regulation is good regulation. and with this type of topic, the devil is almost always in the details. so in the interest of greater transparency, less systemic risk in the system, less connectivity between major players, all of those things we feel great

strides have been made in advancing regulation to promote those objectives. having said that, we have to be aware of unintended consequences. and there's a real risk of those unintended consequences. for example, if you make it difficult for institutions to transact in commodity markets by excessively exposing their options to the public too quickly, that would drain liquidity and make it harder. >> so there is a concern about liquidity longer term? >> yes. >> i want to thank you so much for joining us. blythe masters, thank you for your perspective on the commodities sector. >> thank you ladies both. still ahead, just minutes from now president obama signs the jobs act into law. that bill rolls back securities regulations to make it easier for emerging companies to raise capital. >> silicon valley and the banks, well, they love it. but will it create more jobs or

maybe open the door to more fraud? we'll have some opinions in two minutes. americans are always ready to work hard for a better future.

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you'll find the customers that matter most: the ones in your neighborhood. print it yourself, or we'll help you find a local partner. and postage is under 15 cents. i wish i would have known that cause i really don't think i chose the best location. it's not so bad. i mean you got a deal... right? [ bird cries ] go online to reach every home, every address, every time with every door direct mail. take my glasses off so i can see you better. just minutes from now president obama signs the jobs act into law. supporters of the bill say it's going to make it easier and faster for small companies to raise capital and tap public markets. critics argue that the lifting of the regulations entailed in the legislation will lead to even more investment scams. going to hear now from greg smith with colorado public employees retirement and brett martin, ceo of so nar, a social media start-up. mr. martin, let's begin with you because you support this

legislation which the president is going to sign. lots of friends in the banking community. lots of friends in silicon valley. why is it a good thing? >> well, you know, we're cautiously optimistic. in general we like at any time the government gets out of people's ways and let them help build businesses and build companies. fundamentally we think it's going to do two things. first, it's going to open up whole new fund channels. anyone who raises money knows it's really hard. here at sonar we were lucky enough to have k 2 media and others. this bill is going to make it easier for other entrepreneurs to get supportive investors in their start-up. secondly, and perhaps more profoundly, this will allow normal people to participate in the tech revolution that start-ups like sonar are leading right now. most of the growth in america is coming from high-tech start-ups. why only let rich people participate in that? let's let everyone participate in that and upside to come from

it. >> mr. martin makes interesting points. mr. smith, how do you respond to that? and is in the interest of opening the capital markets and making them move more speedily are we moving too quickly? >> well, as an investor and a part of the investor community, we certainly value the disclosure and transparency requirements currently in place. we think they strike the right balance between access to capital and the cost to providing that information. and to the extent those standards will be lowered and that threshold to access public capital is going to be lowered, it does open the door to investors -- >> how does this open to fraud? why would it make it more likely that fast-buck artists would be able to squeak through? >> well, currently there's a requirement for three years of audited financials prior to an ipo as part of an ipo disclosure. this would shorten the period to

two years, but also reduce some of the requirements of those audited financials including the certification of internal controls. this calls into question whether the numbers are right. and if the numbers can be massaged and changed -- >> great point. >> -- that can mislead investors. >> mr. martin, he has a good point. if you're speeding up some of the internal controls, that's not what you want. >> listen. with every new opportunity comes new risks. and clearly there's going to be bumps along the way. and just -- you can lose money in the public markets very easily as we've seen with some other high profile companies. in the end of the day this will allow more opportunity for more growth. one of the benefits of the information and technology revolution that this bill enables people to participate in is that there's more information more readily available. so just like investment in the stock market, every investor has to make their due diligence on the company they're investing

in. and luckily there's more information out there now than there ever has been before. >> but, mr. smith, there's more information but how can you trust it if the audit standards aren't as high as they might need to be? am i assuming correctly? >> that's exactly correct. with the threshold being imposed through the passage of the jobs act, our access to capital threshold in the united states for ipos will be below that in hong kong in the hong kong exchange. that's a dramatic step. >> i'm sorry. we're a little pressed for time today. mr. smith, mr. martin, we appreciate it. i guess the answer here is time will tell because this legislation's being signed into law within just a few minutes. thank you very much. >> that's what i was checking ochb. when we come back most important economic data of the month tomorrow morning. >> and the stock market is closed for good friday. so should you make any moves ahead of that jobs number?

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welcome back to "power

lunch." i'm kayla tausche with some breaking news. facebook is set to list on the nasdaq according to sources familiar with the matter. this has been a long-awaited decision on where the social networking giant will list. of course nasdaq fees are lower, but it's also the home of storied entrepreneurs like steve jobs and michael dell taking their companies public. we'll have more as soon as we know more details. but we have learned that facebook is set to list on the nasdaq. back to you. >> thank you very much, kayla. a critical economic indicator the jobs report for march is tomorrow morning 8:30 a.m. eastern time. despite the markets being closed for the holidays. so what's the trade ahead of the weekend? trader triple play at the nyse. joe grecco, jim woods, tjm institutional services. thanks, guys, for joining us. matt, what -- joe, rather, what do you do at this point because you can't really trade it on the nyse, certainly, but it's one of the key reports? what are you doing ahead of it? >> well, clearly we have a little bit of pullback today.

same thing we did yesterday after everyone recognized what's really going on in the world and what's going on in d.c. and the mindset as far as easing. at this point you want to prepare yourself to the surprise to the upside where it would be an improvement or a larger improvement than anticipated in which case you really want to be long this market especially below 1400 in the s&p which is where the markets seemed to want to stay for the last two months. >> jim, i'm going to switch to you. what is the bond market telling you in terms of expectations? and what's the trade ahead of a long holiday weekend? >> people are buying bonds today despite the fact that the fed has disavowed further sponsorsh sponsorship. what the bond market is telling you is that there's a little uncertainty with the shortened trading day tomorrow. that creates anxiety and knee jerk reaction is to buy bonds. i like to buy dollars, but i don't like to buy bonds. hopefully the end of the day the fed said they're not interested in buying bonds anymore and the economy getting better. disagree with joe, if there's a

good number tomorrow, certainly could be the interpretation that makes itd even more clear that the fed's not going to be involved and the stock market has to kind of shake off the anti-liquidity jitters. >> apologies to john woods. we have breaking news. john, make it up to you in the next trader triple play. kayla, back to you. >> sue, we want to talk more about facebook. we know that ticker will be fb and they will trade on the nasdaq. one of the big considerations in choosing an exchange of course is the marketing that goes into it. as far as the costs, you know, it's somewhat marginal. remember, it's a little bit less expensive to list on the nasdaq where the fees really come into play is when you actually have the trading fees, you know, they make a fraction of a cent on each trade that takes place. this is a big coup for the nasdaq. launched a big ad campaign playing up the social names that had listed on the network. i don't know if you've seen them on tv. they've been running for several weeks now. nasdaq is the home, as we know, of a lot of these big tech

companies. apple one of the biggest names on the nasdaq. the biggest name there. and a lot of big storied entrepreneurs there. marc zuckerberg and company will join the ranks of companies in the tech sector that are trading on the nasdaq. very exciting day for the nasdaq. and we'll have more as we have it. >> thank you very much, kayla. appreciate it. the story you'll want to stick with cnbc for all day. >> seriously good news break. that's it for "power lunch." >> have a great weekend. "street signs" begins right now. ♪

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